The lender says you need two to three times the daily payment to close a business loan such as a bank statement loan, cash advance or loan against on equipment.
What is three times the daily payment?
Your business needs three times the daily payment. A daily payment of $150 requires $450 to be in the business account at closing. How do you close this loan when you do not have the funds? Our funding experts will guide you through the process.
Complete the application below or contact us. Our hands-on representatives will get your business through this problem, avoid a decline, and get funding now.
Example of needing three times the daily payment to get funding
Road Runner Roofing receives a $50,000 merchant cash advance offer. The daily payment is $200 per day. Just before closing, the advance company does a standard bank account verification check. One of the items reviewed is the current balance, and Road Runner roofing has $400 in the account. The cash advance company declines the loan. They have $200 less than the $600 the lender wants. What should they do?Contact us now at Tel: 919-771-4177
So what else is the lender is looking for? The lender looks at excessive recent overdrafts, low balances, and low average balances. Recent negative balances lasting more than a day or two are also a problem. Take another look at these other cash flow trouble spots. They can bring funding to a stop immediately and permanently.
FAQ: Frequently asked Questions:
Question: What is three times the daily payment?
Answer: Three times the daily payment refers to a frequent requirement for closing an mca merchant cash advance. Take the daily payment your business has to pay and multiply it times 3. A daily payment of $250 would require a balance of $750 at closing to avoid a decline for not enough money in the business account to cover daily payments.
Question: Will we be declined for having less money in the account at closing than what is required?
Answer: Your business may still be funded, but the account balance is compared to the amount the lender wants to see. Your current and recent balances, average daily balances, overdrafts and nsf’s will also be reviewed.
Question: I don’t have the required closing amount in the business account for a cash advance now. What should I do?
Answer: Wait until you can make a deposit to meet the amount required for the mca cash advance company to fund. If that will take too long, then call the lender and tell them how much you have in your account now. Ask them if that is enough before the closing department does the account verification. Transferring money from another account is an option.
You should be aware of the importance of how much money is in your business checking account while applying for a business loan.
As discussed, if your balances are too low, your business may get declined at the last minute, just before closing. Once you are declined, it is difficult to have the decline decision reversed. Make sure you know what account balances the lenders want to see!